Abstract:
In recent years, China’s price intervention policy of primary agricultural commodities has been facing a difficult dilemma between “The surge in import triggered by widened price gap between domestic and foreign markets” and "Pressure from increasing farmers’ income continued to enlarge the price gap". By constructing Import Pressure Coefficient (IPC) and comparing price differences, in this paper, we analyzed the tendency of price gap between domestic and foreign markets and the intervention band of primary agricultural commodities in China. Results showed that 1) the price gap for primary agricultural commodities has been enlarging gradually; 2) import pressure has been increasing continuously; 3) IPC and net imports were positively correlated, and showing a trend of rapid growth. We also found that in terms of import quota, there was not any intervention band for cotton and sugar, while for corn, wheat and rice, this band has been decreasing gradually. Meanwhile, in the aspect of price, there was a certain price intervention band for wheat while limited for rice and corn; for sugar, cotton and soybean, there have not any intervention band. Therefore, with the failure from quota and tariff protection measures, we suggest that the government should adjust the existing agricultural commodities price intervention policy, and explore the price intervention policy system which can separate the farmers’ income protection and the price intervention.